08 September 2011 04:20 [Source: ICIS news]
By Helen Yan
Non-oil grade 1502 SBR prices may fall to around or below $4,000/tonne (€2,840/tonne) CFR (cost and freight)
Feedstock BD prices plunged by $200/tonne to $3,450-3,500/tonne CFR northeast (NE) Asia in the week ended 31 August and are expected to fall further by the end of September as supply outstrips demand, industry sources said.
About 10,000 to 15,000 tonnes of spot BD cargoes from
Spot prices of non-oil grade 1502 SBR were at $4,200-4,250/tonne CFR Asia this week, down by $150/tonne since the end of August, according to ICIS data.
“We are expecting the SBR non-oil grade 1502 price to fall below $4,000/tonne CFR Asia by October as we anticipate that the feedstock BD price to continue to drop to the low $3,000’s CFR basis,” a downstream tyre producer said.
Demand for SBR has also dropped significantly, as several downstream tyre producers in
“There is still room for SBR prices to fall further as the downstream tyre producers are keeping low inventories of up to one month at most, given fears of a global recession,” a trader said.
“Demand for SBR is very weak as the downstream tyre makers are operating at reduced rates and are buying smaller quantities of SBR on a spot basis rather than quarterly contract basis,” a SBR producer said.
SBR is a major feedstock in the production of tyres for the automotive industry.
Weak market sentiment amid rising concerns over the slowing economies of Europe and the
“Demand for autos and tyres is expected to weaken in Europe and the
Asia is a major production centre for global tyre makers such as Bridgestone, Goodyear, Michelin, Continental,
($1 = €0.71)
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